VAN BUREN TOWNSHIP, Mich. (AP) -- Car parts supplier Visteon Corp., which used to be part of Ford Motor Co., said Tuesday one of its British subsidiaries is filing for bankruptcy with the U.K. High Court.
Visteon UK Ltd., which owns plants in Basildon, Belfast and Enfield and employs about 600, is seeking protection from its creditors.
No other unit of Visteon Corp., which employs about 33,500 globally, is filing for bankruptcy, the company said.
The administration order places Visteon UK Ltd. under the control of court-appointed administrators from KPMG, which will "be communicating directly with Visteon UK Ltd. employees and other stakeholders regarding today's action," said the company, which makes car interiors, temperature control systems and powertrain components.
Visteon's move follows a fourth-quarter loss of $328 million, or $2.53 per share -- nearly eight times the loss in the year-earlier period.
On March 6, trading in the shares was suspended. The stock closed at 7 cents on March 3, giving the company a market capitalization of $9.1 million.
Ten days later Visteon said it would not be able to file its annual report on time because of the uncertainty about its ability to keep operating in tough industry and economic conditions.
The company said it expects an upcoming report by its accountants to indicate significant doubt about the company's ability continue as a "going concern."
That could trigger a default under the supplier's main U.S. senior secured credit facilities, allowing lenders to demand that those debts be immediately paid.
Visteon also said it's in discussions with its lenders to get a waiver or change the terms of its debt agreements so that it won't face such demands.
